December 2, 2021, 5:52 pm EST
Oversold Rebound
The stock market rebound more than +600 points or +1.8% in the Dow Jone index. S&P 50o got +1.4% but Nasdaq only received +0.8%.
Looking into the featured table of the leaders of S&P 500 index, we see that they are mostly dominated by the been down cruises, hotels, and airliners. Going through the charts of DAL or CCL as examples, it makes sense for these stocks to have an oversold rebound after almost a month of declines. Indeed, COVID-19 resurgence or uncertainties may threaten the economic recovery. It is yet to be checked and followed on the development of Omicron with vaccines or spread. But, there are lots of unknowns at this moment.
Only Krogen (KR) seems to be a potential new leader from this list.
Volumes are on the light side so today’s action does not change the picture of the strength of bears and the weakness of bulls. Again, we will stay with a bearish bias for now.
Rebound waves can take from a few days to 1-2 weeks. So, let’s keep watching if any new leaders emerged or high volume on up days to show any possible turnaround from bulls.
